HIH Insurance

Background

HIH Insurance Limited was a publicly listed company in
Australia. Prior to its collapse in 2001, the HIH Group was the
second largest general insurer in Australia and had operations in
many other countries.

On 15 March 2001, HIH Insurance Limited and a number of its
subsidiaries were placed into provisional liquidation. Subsequently,
on 27 August 2001, the companies that were in provisional
liquidation were placed into liquidation.

Schemes of Arrangement remain in place for four of the
original eight scheme companies namely HIH Casualty & General Insurance Limited, FAI General Insurance Company Limited, CIC Insurance Limited,
and HIH Underwriting and Insurance (Australia) Pty Limited. The Australian Schemes of
Arrangement of FAI Reinsurances Pty Ltd, World Marine & General
Insurances Pty Ltd, FAI Traders Insurance Company Pty Ltd and FAI Insurances Ltd have
terminated as final distributions have been paid by the Scheme Administrators.

The Scheme Administrators of the remaining companies have made
payments to creditors and will make further payments over the coming
year(s).